Russians face financial crunch as holiday costs soar
The celebration of New Year and Christmas, which Orthodox Christians observe at the beginning of January, will be more modest and, for many, on credit this year, writes "Republic". This is due, among other things, to high inflation, which, according to official data, is over 9.5 percent.
In the upcoming third year of the invasion of Ukraine, Russians face a financial challenge related to New Year's celebrations. The increased prices of essential products and services mean many must take out loans to organize holiday shopping. Officially, inflation in Russia stands at 9.5 percent, but consumers feel it is much higher.
A financial market survey by Compare, cited by "Republic", shows that 11 percent of Russians will take out a loan to cover holiday shopping costs. Most loan applications come from Moscow, where residents spend a monthly salary on gifts and holiday meals.
The prices of Christmas trees have increased by 50 percent, and red caviar by 33 percent. Russians plan to spend an average of 5,000 rubles on holiday food, approximately $123 CAD. The price increases also apply to tangerines and travel, which have become a quarter more expensive.
In the face of rising costs, Russians increasingly turn to homemade preserves and products from their gardens. Vodka mainly comes from illegal sources, and bread is baked at home. Only 8 percent of Russians plan to spend more than 50,000 rubles (approx. $1,235 CAD) on holiday food.
Popularity of domestic trips
Despite financial difficulties, Russians are not giving up on travel. Domestic trips are very popular, especially to regions such as Krasnodar Krai or the Moscow Oblast. The popularity of unusual destinations like Kamchatka or Sakhalin has also increased.
Overseas travel has become significantly more expensive, with costs doubling. Russians eagerly book trips to Thailand, Egypt, and Turkey despite this. The rise in prices does not discourage them from planning winter vacations.
